Initia Chain Halts Operations Following Security Breach; INIT Token Rises 80%

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INIT
$0.221112.2%
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TOKEN
$0.001443-1.97%
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USDC
$1.000%
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Initia Chain has halted L1 operations following a security breach involving unauthorized IBC transfers from a custodial account. According to on-chain news reported by MarsBit, the pause occurred at 14:18 local time (06:18 UTC) after Rollup infrastructure keys were compromised. Preliminary data indicates that $605,000 in USDC and $10,000 in other tokens were drained via the Noble bridge. The incident triggered an 80% surge in INIT, pushing the token price to $0.234 within 24 hours.

HuoXing Finance reports that, as of November 10, market data shows INIT surged 80% in 24 hours, topping the gainers list and breaking above $0.23, currently trading at $0.234. However, on the news front, Initia remains under FUD. According to official announcements, Initia L1 has paused operations at 14:18 (06:18 UTC) today in coordination with validators, as a protective measure. Initia stated that this action was taken after discovering unauthorized transfers from custodial accounts on Initia L1 that held assets bridged to multiple Rollups. Initia confirmed that the investigation indicates these transfers were executed using compromised private keys from Rollup infrastructure, enabling attackers to forge IBC transfers. Preliminary checks reveal that approximately $605,000 in USDC was withdrawn from Initia via Noble, along with an additional $10,000 in other tokens. The majority of remaining assets withdrawn from the custodial accounts are still held on the now-suspended L1 network.

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